BY MOSES SSERWANGA
The construction of Uganda’s
first car production facilities – the Kiira Vehicle Plant -the largest in the
East and Central Africa region is set to be completed by December this year
-providing immense economic opportunities across the country’s nascent
Automotive Industry value chain . But are Ugandans prepared and ready to cash
in ?
The new Minister of
Science Technology and Innovation, Office of the President, Dr. Monica Musenero who
made her maiden tour of the multi- billion Kiira Vehicle Plant at the Jinja Industrial and Business park has
since rallied Ugandans to position themselves and supply vehicle parts to the
facility that will produce 22 buses per day and 5,000 a year .
Dr.
Musenero has observed and rightly so -that
the motor vehicle
market is growing steadily with regional vehicle sales anticipated to reach
over 630,000 vehicles annually for EAC and 10 million vehicles annually on the
African Continent by 2030. This trajectory
therefore , presents an- unprecedented –
untapped opportunity for domestic
industrialization .
Motor Vehicles on average are made of an estimated
30,000 different parts -many of which can easily be made by Ugandans locally
under -the government’s local content participation and Buy Uganda ,Build Uganda (BUBU) -national
economic and development policies.
Apart from creating
well over -100,000 jobs directly and indirectly in the medium term -once
the vehicle-production lines are opened at the plant early next year- Ugandans
should be supported to set up cottage industries to produce car parts while
adding value to the vast minerals that are abundant across the country .
It should be noted that Uganda is already endowed
with vast amounts of minerals, which can
be used for vehicle parts manufacturing including iron ore for automotive
steel; silica sand for glass; rare earth elements for glass glazing, catalytic
converters, batteries and electronics.
Other minerals include graphite for brake pads; oil
for plastics; cobalt and lithium for batteries; kaolin, marble and vermiculite
for paint; tungsten, columbite, tantalite, chromite and titanium for metal
alloys; copper for auto electric conductors and motors, among others.
Many of the country’s youth can be trained and re-skilled
to meaningfully participate and directly
benefit (cash in) from – the localization
of the lucrative Uganda Automotive
Industry- parts supply chain. This is how government’s vision- led by President
Yoweri Museveni to build Uganda’s first
-ever indigenous Motor Vehicle Industry for
jobs and wealth creation will take root .
Government has already clearly defined its economic
growth pathway under its blue print -
the NDPIII where it is stated that a sustainable and successful
industrialization of Uganda -will by large measure be hinged on the development
of key industrial sectors including the automotive industry. This will lead to
import substitution by promoting local
manufacturing and mineral-based industries .
The promotion of local manufacturing of motor
vehicles while also championing the establishment of an efficient, integrated,
sustainable, safe and inclusive public transport system where environmentally
friendly transport solutions.- with Kiira Motors taking the lead can longer be
ignored .
And there are already positive indicators to show
-that the private sector has positively taken note of the opportunity and is
moving very fast to seize it . Private
players including bankers, insurance and other finance companies , such as RentCo Africa, UBA Bank, Absa, DFCU Bank,
Stanbic Bank, Mercantile Bank, TOTAL Uganda, VIVO Energy, MOGAS, Hardware
World, Telecoms -Airtel and MTN have expressed interest to partner with Kiira
Motors in development of the local vehicle production industry .
Tondeka Metro
Co. has offered to be Kiira Motors first client -placing an unprecedent-offtake
order to have 1,030 buses 50 of which will be fully electric – to be built at
the -Kiira Vehicle Plant early next year .
This one deal alone ,if well managed is set to
transform Uganda’s public transport system – in a manner that has not been witnessed
here before . And the benefits are huge
.
Under the deal it has been revealed , Kiira Motors
Corporation will working with Tondeka Metro, RentCo Africa and Golden Dragon as
the Technology Partner to produce 30,000 Buses at the Kiira Vehicle Plant for
the East Africa Regional Market, with 65% Parts and Components localized by
2030.
Kiira Motors and its
partners will deploy the 1,030 Buses by mid-2022. This local joint
venture is aimed at modernizing public
transport in the Urban Centers across Uganda
and beyond- while building the Indigenous Motor Vehicle Industry through
Technology Transfer and Supply Chain Localization.
The Mass Transit Bus System (MTBS) will operate in
the Greater Kampala Metropolitan Area within the radius of 25-30km along gazette
routes and is estimated to move approximately 600,000 people per day while
adhering to the Ministry of Health guidelines on COVID-19 and 1,500,000 people
per day on a business-as-usual scenario. Payments for tickets will be made
through an end-to-end cashless ticketing system integrated with Mobile Money
(Airtel Money, MTN Mobile Money and Afrimoney), Visa, Mastercard and Union Pay.
While the private sector is shifting ground to local
manufacturing and providing home grown solutions for local problems , the
ordinary Ugandan especially those in the transport industry -i.e the bus driver
, the tax drivers , the touts , conductors , the mechanics and vehicle parts
dealers should be mobilized in a concerted government effort -to be part of
Uganda’s Automotive Industry revolution .
The writer is a media , communications, stakeholder
engagements consultant and Advocate of the High
Court of Uganda .
msserwanga@gmail.com
